Withdrawing and Financial Aid

For financial-aid purposes, a class withdrawal occurs when a student:

• formally withdraws, drops out, or is dismissed
• takes fewer than the required number of credits per term to qualify for federal financial aid
• takes a leave of absence prior to completing at least 60% of a payment period or term, usually defined as a semester
• stops attending a class after it started, and still has a monetary obligation to Cabrini
  • A record of the class will be reflected in the student’s academic transcript.
• chooses not to take a class before it started (“Modular Classes”)

The Federal Title IV financial aid programs must be recalculated in these situations.

Recalculation is based on the percentage of earned aid using the following Federal Return of Title IV Funds formula:

• The percentage of the payment period is the number of days completed up to the withdrawal date.

This percentage is divided by the total days in the payment period or term. Any break of five days or more is not counted as part of the days in the term. The resulting percentage is also the percentage of earned aid.

Funds are returned to the appropriate federal program based on the percentage of unearned aid using the following formula:

• Aid to be returned (which is 100% of the aid that could be disbursed minus the percentage of aid actually earned) is multiplied by the total amount of aid that could have been disbursed during the payment period or term.

When Title IV funds are returned, the student borrower may owe a debit balance to Cabrini.

• If a student earned less aid than was disbursed, Cabrini and the student would both be required to return a portion of the funds.
• If a student earned more aid than was disbursed, Cabrini would owe the student a post-withdrawal disbursement, which must be paid within 120 days of the student’s withdrawal.